Select 3 questions from Chapter 10OR 3 questions from Chapter 22 and post your answers to the discussion thread.
Chapter 10: Developing Accountability in Risk Management
1. Risk workshops often generate so many risks that it is not possible to adequately assess and address all of them. On other occasions a small number of risks are identified, which allows for an in-depth assessment. What are the advantages and disadvantages of these two scenarios?
2. Explain the differences between outcomes, causes, and risks. Provide an example of each that was not covered in the book. What are the implications of confusing these?
3. Is the terminherent riskhelpful? How could it help and/or hinder the assessment of risk? Do not use Investopedia to answer this question. Be creative!
4. What are the possible complications of moving from assessments of predefined sets of risks to using top-down objectives based on the balanced score card approach?
5. How does voting technology work? Discuss the advantages and disadvantages of using voting technology compared with other approaches such as those described in this case study.
Chapter 22:JAA Inc.—A Case Study in Creating Value from Uncertainty: Best Practices in Managing Risk
- At JAA, how are strategic objectives, context, stakeholders, and risk criteria linked? Support your comments with specific examples of the link in these four areas.
- Why did JAA believe it is important to create risk criteria? Can a reasonable risk treatment plan be implemented without creation of risk criteria?
- Review the risk management policy in Appendix B and describe the kinds of things that constitute a best-in-class policy.
- What other types of general or specific polices can you describe to manage risks?
- According to JAA, why is the "tone at the top" and strong risk culture deemed critical elements for the company's success?